Dharma Jegan |Dheerasinghe Durairatnam

The Commercial Bank of Ceylon PLC has made a steady start to 2015, with profit after tax of Rs 2.509 billion for the three months ended 31st March, an improvement of 10.1% YoY.

A robust YoY growth in loans and receivables coupled with customary strong deposit growth and lower cost of funds contributed to this growth by generating net interest income of Rs 7.233 billion, an increase of 10.06%, Sri Lanka’s largest private bank said in a filing with the Colombo Stock Exchange.

Profit before VAT and NBT for the three months reviewed was up 7.88% to Rs 4.204 billion, while profit before tax at Rs 3.579 billion reflected an improvement of 8.77%, the Bank reported.

Total operating income, comprised of net interest income, commissions, foreign exchange income, recoveries and other income increased by 8.84% to Rs 9.682 billion.

Commenting on these results, Commercial Bank Chairman Mr Dharma Dheerasinghe said: “Commercial Bank’s performance in the first quarter is consistent with projections and reflects the inherent strengths of the Bank. There are several challenges that are common to most players in the banking sector, and in that context, the Bank’s figures are impressive.”

Commercial Bank Managing Director Jegan Durairatnam said that the Bank was able to report a commendable growth in profits despite shrinking interest margins witnessed during the period under review.